What is unemployment and what is the unemployment rate? What are the costs of unemployment?
What will be an ideal response?
Ques. 2When an Australian citizen enjoys military protection in Australia without contributing to the cost of Australia's defense budget, then
A) this citizen is a free rider.
B) Australia is a free rider.
C) this citizen receives no benefits if Australia is attacked.
D) Australia's defense budget will run out of funds.
Ques. 3Which of the following is a non-price determinant of demand?
A) income
B) tastes and preferences
C) prices of related goods and services
D) All of the above are correct.
Ques. 4A common approach that economists use to understand, explain and predict economic phenomena is to
A) form a theory or model.
B) conduct experiments in a science lab.
C) ask what people think.
D) examine people's thought processes.
Ques. 5A tax levied on purchases of a particular good or service
A) is illegal because it is discriminatory.
B) always leads to a reduction in total tax revenues.
C) always leads to an increase in total tax revenues.
D) is an excise tax.
Ques. 6Refer to the above figure. Between points f and g, the opportunity cost of producing 75 more bushels of wheat is
A) 1 bushel of beans.
B) 4 bushels of beans.
C) 25 bushels of beans.
D) 100 bushels of beans.
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